corinne dunbar m d maintains the accounting records of dunbar clinic on a cash basis 564649

E 18 (Cash to Accrual Basis) Corinne Dunbar, M.D., maintains the accounting records of Dunbar Clinic on a cash basis. During 2012, Dr. Dunbar collected $142,600 from her patients and paid $60,470 in expenses. At January 1, 2012, and December 31, 2012, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows.

Instructions

Prepare a schedule that converts Dr. Dunbar’s “excess of cash collected over cash disbursed” for the year 2012 to net income on an accrual basis for the year 2012.